Business Process Analysis Guide to Simplify Trade Procedures

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Updated September 2012


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The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional

development arm of the United Nations and serves as the main economic and social development

centre for the United Nations in Asia and the Pacific. Its mandate is to foster cooperation between its

53 members and 9 associate members. ESCAP provides the strategic link between global and

country-level programmes and issues. It supports Governments of countries in the region in

consolidating regional positions and advocates regional approaches to meeting the region’s unique

socioeconomic challenges in a globalizing world. The ESCAP office is located in Bangkok, Thailand.

Please visit the ESCAP website at www.unescap.org for further information.

The darker area of the map represents the members and associate members of ESCAP

The United Nations Network of Experts for Paperless Trade in Asia and the Pacific (UNNExT) is a

community of knowledge and practice for experts from developing countries and transitioneconomies from Asia and the Pacific involved in the implementaation of electronic trade systems

and trade facilitation. Established by ESCAP and the United Nations Economic Commission for

Europe (UNECE), UNNExT aims to support national, subregional and transcontinental Single Window

and paperless trade initiatives. It’s emphasis is on training, knowledge sharing and application of

international standards for trade facilitation. For more information on UNNExT, please visit

www.unescap.org/unnext.


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UNITED NATIONS NETWORK OF EXPERTS FOR PAPERLESS TRADEIN ASIA AND THE PACIFIC

UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA

AND THE PACIFIC

UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE

BBuussiinneessss PPr r oocceessss A Annaallyyssiiss GGuuiiddee

ttoo SSiimmppll ii f f yy TTr r aaddee PPr r oocceedduur r eess


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FOREWORD

Today’s international supply chains face an increasingly competitive environment, with new

product safety regulations, and intense border security concerns. The need for traders to complywith all procedural, regulatory, and documentary requirements rapidly, accurately and cheaplyhas become extremely important in order to remain competitive. To improve the efficiency andeffectiveness of processes and information flows throughout the supply chain, it is crucial that theexisting “as-is” conditions are well understood, prior to implementing trade facilitation reforms.Adapted from the business process modeling techniques that have been originally applied in theautomation of mechanistic business processes, this Business Process Analysis Guide to SimplifyTrade Procedures (BPA Guide) aims to provide a simple methodology to document the “as-is”

business processes in international trade transactions. The BPA Guide also shares valuablecountry experiences and lessons learned in this area. Insights about existing processes and

procedures in trade would provide senior government officials with crucial information on where

improvements are necessary.

It is our hope that this BPA Guide will serve government officials as an instrument that facilitatesthe identification of bottlenecks in trade processes and procedures, prioritization of areas forimprovement, and the design of strategies to eliminate these bottlenecks. Ultimately, business

process analysis can bring about greater transparency, improved efficiency, and greater capacityto innovate, which are in turn the keys to remaining competitive in today’s international markets.

Ravi RatnayakeDirectorTrade and Investment DivisionESCAP

Virginia Cram-MartosDirectorTrade and Sustainable Development DivisionUNECE


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ACKNOWLEDGEMENTS

The original version of this Guide was prepared by a team coordinated by Shamika Sirimanne,Chief, Trade Facilitation Section, and consisting of Maria Misovicova, Peng Bin of ESCAP,Markus Pikart of UNECE and Somnuk Keretho and Thayanan Phuaphanthong from the Institutefor Information Technology Innovation, Kasetsart University. Substantive inputs were provided

by Nikolaus Sahling (consultant). Valuable contributions were received from Yann Duval, SangWon Lim (ESCAP) and Tom Butterly (UNECE). The external editing was provided by DorothyVan Schooneveld.

This revised and extended version of the UNNExT Business Process Analysis (BPA) Guide was prepared by Thayanan Phuaphanthong under the guidance of Yann Duval, Acting Chief, TradeFacilitation Section. The revisions and additions were made on the basis of feedback received

from users who had applied the BPA methodology in conducting import and export processanalyses in over 10 countries in Asia and the Pacific between 2010 and 2011, including SokSiphana (Cambodia), Prabir De (India), and Somnuk Keretho (Thailand). Inputs and suggestionsreceived from the members of the UNNExT Business Process Analysis Advisory Group, whomet in October 2011 in Seoul , Republic of Korea, were also taken into account, including thosefrom Ian Watt, Applied Electronic Commerce, Australia. Sangwon Lim (ESCAP), ChristianKsoll (ESCAP) and Markus Pikart (UNECE) also contributed useful inputs for the revision. Theassistance of Bonkojmanee Kohsuwan in finalizing and formatting the revised Guide isacknowledged.

The Business Process Analysis Guide to Simplify Trade Procedures (BPA Guide) was developedas part of the joint technical assistance project by ESCAP and UNECE and under the auspices ofthe United Nations Network of Experts for Paperless Trade in Asia and the Pacific (UN NExT).The project aims to raise the capacity and accelerate the adoption of the above-mentioned tradefacilitation measures, especially in countries where those measures are not yet commonlyimplemented.


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PREFACE

Moving goods across borders requires meeting a vast number of commercial, transport andregulatory requirements. More stringent requirements regarding product safety and security leadto potentially inefficient operations and often create unnecessary delays and costs. At present, asource of tremendous inefficiencies is associated with the preparation of transport and regulatorydocuments, unclear border procedures, and overzealous cargo inspection.

A Single Window (see Glossary) is one of the trade facilitation measures that has increasinglygained momentum, especially in the Asia-Pacific region, as it serves as the backbone for

paperless trading. Once it is fully operational, the complexity as well as unnecessary delays andcosts in administering cross-border movement of goods are expected to be significantly reduced.

To ensure that the Single Window facility responds to stakeholders’ needs in different stages ofthe international supply chain, it is important that its design reflects present business processes.Given that the existing business processes may entail redundant activities and complexities thatcreate procedural inefficiencies and bottlenecks, it is essential to simplify the existing business

processes and harmonize them, where applicable, with relevant international recommendations, best practices, and standards such as UN/CEFACT Recommendation 18 on Facilitation MeasuresRelated to International Trade Procedures, WCO Revised Kyoto Convention, WCO CustomsGuidelines on Integrated Supply Chain Management, and WCO Framework of Standards toSecure and Facilitate Global Trade prior to adopting them as a basis for the design of the SingleWindow. The harmonization and simplification of business processes cannot be achieved withoutgood and in-depth understanding of existing practices.

The BPA Guide offers a simple methodology to elicit, document, and analyse the existing “as-is” business processes involved in international trade, as well as aid in developing recommendationsfor further improvement. It suggests a set of practical steps and activities, from setting the scopeof the business process analysis project; planning its implementation; collecting relevant data;and presenting it in an easily understandable manner, to analysing the captured data in order toidentify bottlenecks and developing recommendations for improvement. This recommended setof steps and activities was generalized from the business process analysis exercise conducted inThailand in preparation for the development of Thailand’s Single Window e-Logistics, which is anational obligation under the ASEAN Single Window initiative. To demonstrate the practicalities

of the BPA Guide, a step-by-step approach on how to elicit, document, and analyse the existing“as-is” business processes involved in international trade is presented. Based on the results,recommendations for further improvement are developed under consideration of existingconventions defined in the Guide.

The BPA Guide intends to serve practitioners and policymakers from government agencies or the private sector involved in:

The harmonization and simplification of international trade procedures; The harmonization of related data requirements with the international standard; and The implementation of Single Window.

From the BPA Guide, practitioners will learn a step-by-step approach to business process analysisand the development of recommendations for future improvement. Policymakers, on the otherhand, will benefit from a better understanding of the linkage between business process analysis


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and trade facilitation measures, including business process simplification, data harmonization,and Single Window implementation. They will become acquainted with prerequisite steps thathave to be taken prior to the implementation of trade facilitation measures.


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CONTENTS

Acknowledgements.........................................................................................................................ii

Preface............................................................................................................................................iii

Contents .......................................................................................................................................... v

Boxes...............................................................................................................................................vi

Figures...........................................................................................................................................vii

Tables ...........................................................................................................................................viii

Abbreviations................................................................................................................................. ix

1. Trade Facilitation And Business Process Analysis .................................................................1

2. Introduction To The Business Process Analysis......................................................................4

3. Guide To Business Process Analysis To Simplify Trade Procedures..................................10

Phase I: Scope setting ............................................................................................................16

Step 1: Define the project scope.........................................................................................16Step 2: Develop a work plan and secure resources ............................................................21

Phase II: Data collection and process documentation ..........................................................25

Step 3: Acquire background information ...........................................................................25

Step 4: Conduct interviews and document captured data ..................................................27

Phase III: Process analysis and recommendations development ..........................................39

Step 5: Analyse the “as-is” processes ................................................................................39

Step 6: Develop and propose recommendations ................................................................48

4. Recommendations For Implementation.................................................................................52

5. Concluding Remarks ............................................................................................................... 54

Glossary.........................................................................................................................................55

References .....................................................................................................................................57

Annex: Business Process Analysis Of The Export Of Jasmine Rice In Thailand…………...59


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BOXES

Box 1-1. The Un/Cefact International Supply Chain Model........................................................................ 1

Box 3B-1. Case Study – Define The Project Scope .................................................................................... 17

Box 3B-2. Case Study – Scope Of Analysis ............................................................................................... 18

Box 3B-3. Identifying Core Business Processes ......................................................................................... 18

Box 3B-4. Case Study – Visualize The Project Scope ............................................................................... 20

Box 3B-5. Case Study – Use Cases Of Core Business Processes In Frozen Shrimp Export ...................... 23

Box 3B-6. Project Evaluation And Review Technique (Pert) Estimate...................................................... 24

Box 3B-7. Responsibilities And Required Skills Of Process Analysts ....................................................... 24

Box 3B-8. Output Of Step 4 ........................................................................................................................ 28

Box 3B-9. Examples Of Interview Questions ............................................................................................. 32

(For Interviewing Exporter/Importer And Government Agency) ............................................................... 32

Box 3B-10. How To Draw An Activity Diagram ....................................................................................... 34

Box 3B-11. Case Study – Process Description Of “2.1) Have The Product Sampled And Examined” UseCase Within The Bpa Of Frozen Shrimp Export From Thailand To The United States, Japan, And The

European Union........................................................................................................................................... 36

Box 3B-12. Integration (Partial) Of Activity Diagrams Chart From The Bpa Of Frozen Shrimp ExportFrom Thailand To The United States, Japan, And The European Union.................................................... 37

Box 3B.13. The Time-Procedure Chart From The Bpa Of Frozen Shrimp Export From Thailand To TheUnited States, Japan, And The European Union ......................................................................................... 38

Box 3B.14. Analyzing The Time-Procedure Chart Of Frozen Shrimp Export From Thailand To Its MajorExport Market Including The United States, Japan, And European Union (1) ........................................... 41

Box 3B-15. Analyzing The Time-Procedure Chart Of Frozen Shrimp Export From Thailand To Its Major

Export Market Including The United States, Japan, And European Union (2) ........................................... 42

Box 3B-16. Examples Of Questions Guiding The Analysis Of A Business Process.................................. 43

Box 3B-17. Examples Of Business Process Analysis Checklist ................................................................. 44

Box 3B-18. Case Study – Benchmarking Bangladesh’s And Thailand’s Frozen Shrimp Export To Japan(1) ................................................................................................................................................................ 46

Box 3B-19. Case Study – Benchmarking Bangladesh’s And Thailand’s Frozen Shrimp Export To Japan(2) ................................................................................................................................................................ 47

Box 3B-20. Examples Of International Instruments For The Simplification Of Trade Related Procedures..................................................................................................................................................................... 50


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FIGURES

Figure 1B-1 Step-By-Step Approach Toward An Electronic Single Window ................................3

And Paperless Trade Environment...................................................................................................3

Figure 2C-1. Use Case Diagram ......................................................................................................6

Figure 2C-2. An Activity Diagram Explaining “2.3) Prepare Export Permit” Use Case ................7

Figure 3A-1. Key Steps And Stakeholders In Business Process Analysis ....................................10

Figure 3B-1. Stakeholders Involved In Step 1 ...............................................................................16

Figure 3B-2. Activities Involved In Step 1 ....................................................................................16








Figure 3B-10. Activities Involved In Step 5 ..................................................................................40

Figure 3B-11. Stakeholders Involved In Step 6 .............................................................................48

Figure 3B-12. Activities Involved In Step 6 ..................................................................................49


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TABLES

Table 2C-1. Use Case Notations ......................................................................................................6

Table 2C-2. Activity Diagram Notations .........................................................................................7

Table 3A-1. Roles And Responsibilities Of Stakeholders In Bpa .................................................12

Table 3A-2. Overview Of Bpa .......................................................................................................13


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ABBREVIATIONS

AEOASEAN

Authorized Economic OperatorAssociation of Southeast Asian Nations

ASYCUDA Automated System for Customs DataECE United Nations Economic Commission for EuropeESCAP United Nations Economic and Social Commission for Asia and the

PacificICT Information and Communication TechnologiesPERT Project Evaluation and Review TechniqueUML Unified Modeling LanguageUN/CEFACT United Nations Center for Trade Facilitation and Electronic BusinessUN NExT United Nations Network of Experts for Paperless Trade in Asia

Pacific


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1. TRADE FACILITATION AND BUSINESS PROCESS ANALYSIS

International trade transaction encompasses all activities related to the establishment ofcommercial contracts (commercial procedures), the arrangement of inland and cross-border

transportation of goods (transport procedures), the export and import formalities to meetregulatory requirements (regulatory procedures), and the payment for purchased goods (financial

procedures). These activities involve “collecting, presenting, communicating, and processing thedata required for the movement of goods.1” They require cooperation between many actors,including exporters/traders, government agencies and service providers from different countries.

Box 1-1. The UN/CEFACT international supply chain model

UN/CEFACT Recommendation No. 18 illustrates a simplified view of the international supply chain in the Buy-Ship-Pay model(see the picture below). The model suggests “a series of fragmented activities” that are carried out throughout the internationaltrade transaction. In addition, there are various key actors in the international supply chain associated with different activitieswithin them such as government agencies, intermediaries (i.e. service providers), and traders.

1 OECD. (2002). Business Benefits of Trade Facilitation. Organization for Economic Co-operation and Development.Paris.


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1A Participants and their interests

According to their interests and needs, the actors of the international trade transaction can begrouped into the following categories:

a) Government agencies

Government agencies involved in the cross-border trade varies by country but aretypically Ministry of Trade, Finance/customs, transport, health, agriculture,information and communication technology, veterinary, and plant and quarantineagencies. All of them are responsible for implementing a wide range of bordermanagement policies such as preventing an illegal movement of people and goods,

protecting national and international public interest in terms of health, safety andsecurity, and facilitating legitimate travel and trade. Customs is one of thegovernment agencies that is heavily involved in border management. Its role has beenextended from traditional tasks such as controlling the entry and exit of goods,enforcing trade laws, ensuring trade compliance, and collecting revenues tofacilitating trade through the use of pre-arrival clearances, the implementation of theauthorized economic operator (AEO) concept, green lanes, post-clearance audits, andthe deployment of information and communication technologies (ICT)-enabled tradefacilitation solutions, such as Single Window systems.

b) IntermediariesIntermediaries are those who provide commercial, financial, and/or transport serviceswithin an international supply chain, such as freight forwarders, customs brokers,third-party logistics service providers, carriers, express integrators, port and terminaloperators, banks, insurance companies, and information technology (IT) value-addedservice providers. They are normally from the private sector, which needs a swift

exchange of trade information and transparent regulatory environment in order tocomply with the requirements of clients.

c) TradersTraders include those who buy and sell goods. Generally, they are the principals ofthe cargo and users of the services provided by the intermediaries. In carrying outinternational trade transactions, they must meet the regulatory requirements ofgovernment agencies from both the home country, the destination country, andrespective transit countries. The competitiveness of the sellers depends not only onsellers’ productive capacities, but also on sellers’ ability to fulfill orders. This meansdelivering products to the destination at the right time, at the right quality, at the right

quantity, at reasonable costs, and provide other services as required such astraceability of cargo. It is therefore important that transparency and predictability ofthe international supply chain especially in customs procedures, the physicalinspection of goods, and the acquisition of trade-related administrative documents areenhanced so that trade transaction costs and uncertainties within the supply chain can

be reduced to the minimum.

1B Business Process Analysis in the context of trade facilitation

Trade facilitation is recommended by many international and intergovernmental organizations asa strategy to eliminate bottlenecks and complexities of the international trade. Various definitions

that have been adopted reflect different trade facilitation measures. They include: The simplification of trade procedures and, where possible, elimination of unnecessary

and duplicate ones;


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The harmonization of trade procedures with international recommendations, best practices,and standards;

The simplification and standardization of documents required for the international tradetransaction;

The harmonization and standardization of information and information flows associatedwith the international trade transaction;

The effective and efficient sharing of trade and transport related information amongrelevant stakeholders of the international supply chain;

The use, standardization, and improvement of physical infrastructure and facilities; and The harmonization of applicable laws and regulations with international standards.

Figure 1B-1 Step-by-step approach toward an electronic Single Window

and paperless trade environment

The successful implementation of

trade facilitation measures, however,requires not only political andgovernmental support in terms of

policy directions as well as human andfinancial resources, but also an in-depth understanding about existing

business processes. According toUN/CEFACT’s step-by-step approachtoward a Single Window paperlessenvironment as shown in Figure 1B-1,

business process analysis is

recommended as the first step to betaken before undertaking other tradefacilitation measures related to thesimplification, harmonization, andautomation of trade procedures anddocuments.2

In order to improve the efficiency and effectiveness of processes and information flowsthroughout the international supply chain, it is highly recommended that the “as-is” conditions ofrelevant business processes are well understood prior to the selection of trade facilitation

measures.

2 UNECE (2006). Background Paper for UN/CEFACT Symposium on Single Window Common Standards and Interoperability, Geneva.


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2. INTRODUCTION TO THE BUSINESS PROCESS ANALYSIS

2A Definition and scope

A business process is a sequence of steps, with a beginning and an end, performed for a given purpose. Based on this generic definition, a business process considered within the framework oftrade facilitation can be defined as:

A chain of logically connected activities to move goods and related information across

borders from buyer to seller and to provide related services

Business processes are valuable organizational assets. They enable the creation and delivery of business values as defined by organizational goals. Business processes are often driven byinformation. In the area of international supply chain the movement of cargo has to be escorted

by corresponding cargo documents. The export of rice from some of the most trade-friendlycountries in Asia, for example, may involve 15 different parties, 24 documents, and about 700data elements.3 According to ADB and UNESCAP (2009), no less than 22 days may be necessaryfor the exporter to comply with various procedures and have the shipment ready for export at thenearest seaport. Delay on document processing or lack of integrity in the information that flowsacross business processes has become a factor that holds back cargo movement. On average, eachadditional day that a cargo is delayed prior to being shipped reduces trade volume by at least 1

per cent and by approximately 6 per cent if the products are time-sensitive (perishable)agricultural goods.4

Because the underlying business process has a significant impact on the performance of theoverall business, any process improvement achieved can enhance the competitiveness both at theorganizational and the national level. Business process analysis is a study of existing business

processes within one or across several organizations, both in normal operation and in exceptionalsituations. Its primary goal is to understand attributes of business processes and relationshipsamong them. The results of the business process analysis may serve as a baseline forimplementing trade facilitation measures such as:

Simplification of trade procedures (including commercial, transport, regulatory andfinancial procedures);

Simplification of documentary requirements and their alignment with internationalstandards; and

Automation of international trade transaction and its associated electronic documents forSingle Window and paperless trade systems.

2B Business process modeling methodology used in this Guide

Business process modeling is a technique for documenting business processes where eachelement of the business process is represented by graphical notations. The resulting graphicalrepresentation of a business process is known as a business process model. Each business processmodel illustrates:

Activities that come in a specific order and decision points; Actors who perform those activities;

3 ADB and UNESCAP (2009). Designing and Implementing Trade Facilitation in Asia and the Pacific. AsianDevelopment Bank. Manila. 4 Djankov, S., Freund, C., and Pham, C. (2006). Trading on Time. World Bank. Washington DC.


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Inputs and outputs of each activity; Criteria for entering and exiting the business process; How actors relate to one another; How information flows throughout the business process; Associated rules and regulations; and Quantitative indicators such as number of steps, as well as time and cost required to

complete a particular business process.

The documentation of existing business processes in simple diagrams and brief descriptions helpscreate a common understanding on working norms and operational procedures among relevantstakeholders as well as increase stakeholders’ knowledge about the business processes.Additionally, it serves as a basis to identify areas for the optimization of business processes. Itthus helps policy makers to redesign processes, make necessary modifications in an informed andtargeted manner as well as justify those changes. The BPA provides also insights into how certain

policies will improve operational efficiency, transparency, and effectiveness.

The stakeholders of the business processes include practitioners who deal with the documented business processes on a daily basis; experts who may be brought in to assist with the initiationand implementation of business process improvement programs, and decision makers who makeinformed decisions regarding the revision of related regulations and procedures.

Business process models are increasingly used in trade facilitation. For the purposes of this Guide,the business process model serves as a tool that facilitates:

The analysis of activities, documents, and information flow in international trade procedures;

The identification and prioritization of problematic areas that cause the delays in movinggoods from seller to buyer; and

The design of improvement measures to address these problematic areas (e.g.simplifying processes and data, and eliminating redundancies).

The Unified Modeling Language (UML) 5 provides a set of standard graphical notations for business process modeling. UML is internationally accepted and widely used not only among practitioners in business communities but also in information technology and softwaredevelopment.

The quality of a business process model depends not only on its ability to accurately representvarious elements of a business process, but also on the appropriate use of graphical notations. Theconsistent use of modeling techniques produces results that can be easily understood, analysed,

compared, and validated. If the ultimate goal of the business process modeling and analysis is toautomate the international trade transaction and promote the electronic exchange of tradedocuments through the Single Window, the use of common standard graphical notations in

business process modeling is vital. This is mainly because the common standard graphicalnotations allow business domain experts to communicate procedural and documentaryrequirements with technical experts who are designated to put the systems in place.

2C UML graphical notations used in th is Guide

In business process analysis, the use case diagram, such as the one shown in Figure 2C-1, servesas a project's frame of reference. Its purpose is to present a graphical overview of core business

processes that are subject to further examination at a greater depth. It indicates all stakeholders

5 UML Resource Page, http://www.uml.org.


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involved in these business processes and demonstrates all actual associations between these business processes and the stakeholders.

Figure 2C-1. Use Case Diagram

Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for IT Innovation,Kasetsart University.

Various elements of a use case diagram include an actor, a use case, and a relationshipassociation. The use of a boundary is optional. It can be useful as means to organize use cases. Aset of graphical notations used in the use case diagram are provided with explanations of their

meaning in Table 2C-1.

Table 2C-1. Use Case notations

Notation Description and instruction for use

Boundary:

Represents a process area

Includes the name of a subject boundary on top

E.g., ship

Actor:

Represents a role that participates in a particular business

process Can be an individual, an organization, a department, etc.

Is labelled with a role-name

Is placed outside the subject boundary

E.g., Exporter or Representative, Exporter’s Bank

Use Case:

Represents a core business process

Is labelled with a descriptive verb-noun phrase

E.g., buy, have product sampled and examined

Relationship Association:

Links actors with the use cases (later business processes) they participate in


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As illustrated in Figure 2C-2, the activity diagram is an elaboration of each business processdisplayed in the use case diagram. It portrays a sequence of activities and information flows fromone responsible party to another. It informs its audience not only who is doing what in whichorder, but also documentary inputs that serve as prerequisites to activities and documentaryoutputs that can be obtained upon completion of activities.

Figure 2C-2. An activity diagram explaining “2.3) prepare export permit” use case

UML Use Case Diagram UML Activity Diagram

UML Use Case Diagram and Activity Diagram areused to visualize the captured knowledge of thebusiness processes. The use case diagramillustrates high-level business processes and actorsassociated with each of them. It serves as a frameof reference for further elaboration of businessprocess modeling work. The activity diagram, onthe other hand, describes activities, inputs, andoutputs associated with each business processlisted in the use case diagram.

A set of graphical notations for used in the activity diagram are provided with explanations oftheir meaning in Tables 2C-2. These notations are adopted from UML.

Table 2C-2. Activity Diagram notations

Notation Description and instruction for use

Initial State

Represents the beginning of a set of activities

Can only be one initial state for each activitydiagram

Final Flow State

Is used to stop the flow of activities

Indicates that further activities cannot be pursuedwithin the described context

Final Activity State

Is used to indicate the completion of the business process


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Swimlane

Is used to break up individual actions to individuals/agencies that are responsible for executing theiractions

Is labelled with the name of the responsibleindividual, organization, or department

E.g., Exporter or Representative, Department ofFisheries

Activity

Represents a non-decomposable piece of behaviour

Is labelled with a name that 1) begins with a verband ends with a noun; and 2) is short yet containsenough information for readers to comprehend

E.g., Prepare information needed for export permitapplication, Verify submitted information, Issue

Export Permit, Collect R. 9Object

Represents a document or information that flowsfrom one activity to another activity

Is labelled with a name of a document

E.g., Application Form for Export Animals/AnimalRemains Through Thailand (R. 1/1), CommercialInvoice, Packing List, Export Permit (R. 9)

Decision

Represented by a diamond

Refers to the point where a decision, depending onthe outcome of a specific prior activity, has to bemade

Has multiple transition lines coming out of adecision point and connecting to different activities

Label each transition line that comes out of‘Decision’ with the condition, such as Correct,Incorrect

Transition line

Indicates a sequential flow of activities andinformation flows in an activity diagram

Fork (Splitting of Control) Is used to visualize a set of parallel activities or

concurrent flow of activities

Join (Synchronization of Control)

Is used to indicate the termination of a set of parallelactivities or concurrent flow of activities


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2D Business process modeling tools

Business process modeling can be achieved through simple drawing tools such as paper and pencil, daily use office software (e.g., Microsoft Powerpoint, OpenOffice Impress, iWorkKeynote), and basic diagramming software 6 (e.g., Microsoft Visio, OpenOffice Draw,SmartDraw).

Process analysts may consider using an off-the-shelf tool that has been designed specifically tofacilitate not only the modeling of business process models, but also the management of business

process model repository7 (e.g. Enterprise Architect, MajicDraw, StarUML). The management of business process model repository includes activities such as:

Establishing a business process model repository;

Storing business process models and related process knowledge in the repository;

Updating those business process models and process knowledge; and

Managing any changes made and to be made to business process models and processknowledge.

The business process repository, that these off-the-shelf business process modeling tools helpestablish, serves as a central location for storing business process models and process knowledge.Via the tool, process analysts have an easy access to a repository that displays both business

process models as a whole as well as individual elements that constitute business process models.The re-use of business models, their patterns, and their parts is therefore made easy. Nevertheless,it is important to bear in mind that process analysts may experience a high and steep learningcurve before they can enjoy the benefits of rich business process modeling tools.

2E Outputs of the business process analysis

The main deliverables of the business process analysis exercise within the context of tradefacilitation is the business process analysis report that contains the following components: A use case diagram showing the scope of the business process analysis project; A set of activity diagrams; each explains a core business process as represented by a use

case in the use case diagram; A set of process descriptions; each provides a textual description of an activity diagram

itself and related information including relevant laws, rules, and regulations,documentary requirements, input and criteria to enter/begin the business process, outputand criteria to exit the business process, and indicate the average time required tocomplete them;

A list of trade forms and documents which may be accompanied with samples of

physical copies; An integrated activity diagram; A time-procedure chart; A list of identified bottlenecks; and Recommendations to improve the business process and/or to-be business process models.

These output components are further explained in the following parts of the BPA Guide.

6 See http://en.wikipedia.org/wiki/Diagramming_software for an extended list. 7 See http://en.wikipedia.org/wiki/List_of_Unified_Modeling_Language_tools for an extended list.


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3. GUIDE TO BUSINESS PROCESS ANALYSIS TOSIMPLIFY TRADE PROCEDURES

3A Introduction to phases, stakeholders and related issues

The business process analysis consists of three phases that have to be carried out in sequence (seeFigure 3.1):

Phase I: Scope setting, which includes the following two steps:Step 1 - Define a project scopeStep 2 - Develop a detailed work plan and secure resources

Phase II: Data collection and process documentation, which includes two steps:Step 3 - Acquire background information

Step 4 - Conduct interviews and document captured data

Phase III: Process analysis and recommendations development, which includes thefollowing two steps: Step 5 - Analyse the “as-is” processesStep 6 - Develop and propose recommendations.

Figure 3A-1. Key steps and stakeholders in business process analysis


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Table 3A-1. Roles and responsibilities of stakeholders in BPA

Phase I Phase II P

RoleStep 1:

Define project

scope

Step 2:

Develop a detailed

plan and secure

resources

Step 3:

Acquire

background

information

Step 4:

Conduct interview

and document

captured data

Step 5:

Analyse the “as

is” processes

Provide management support and direction when neede

Participate in major project reviews and approve key dethe recommendations toward the desired to-be processe

Ensure timely resolution of issues affecting project succ

Project

Sponsor

Finalize andapprove the

project scope

Approve anychanges to

project scope

Commit specificresources

Projectmanager/pro

ject leader

Acquirerelevantinformation todefine thescope of a

process under

investigation

Develop adetailed plan

Organizeresources

Oversee and control the execution of the plan

Participate in the review of milestone deliverables inclu

Process

Analysts

- Review plan and proposeadjustment ifneeded

Conduct deskresearch

Make necessary preparation forinterview andobservation

Conduct theinterviews

Collect andconsolidate data

Document the“as-is” processes

Analyse andidentify

bottlenecks andimprovementopportunities ofthe “as-is”

processes

Process

participants/

business

domain

experts

Verify the proposed project scope

- Provide relevant knowledge on process underinvestigation

Verify the accuracy of applicable deliverables


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3B Individual phases, steps and activities

The rest of this Chapter will discuss the three phases of the business process analysis, detailedsteps involved in each phase and activities necessary to complete the steps.

Phase I: Scope setting

The objective of this phase is to establish a baseline for the implementation and management of a business process analysis project. It consists of two steps:

Step 1 - Define the project scopeStep 2 - Develop a detailed work plan and ensure resources.

Step 1: Define the project scope

Step 1 aims at identifying a frame of reference for further detailed business process modelingwork. The frame of reference, which is visualized in a UML use case diagram, illustrates the

high-level business processes and actors associated with each of them.

Figure 3B-1. Stakeholders involved in Step 1

This UML use case diagram indicatesthat Step 1 “Define project scope”requires the participation from:

Project Sponsor

Project Manager/Project Leader

Process Participants/BusinessDomain Experts

This step includes seven necessary activities, as illustrated with the UML activity diagram inFigure 3B-2. Its detailed description is provided below.

Figure 3B-2. Activities involved in Step 1

Activity 1.1


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Project sponsor identifies “a business domain” of interest. A business domain is usually the nameof the industry (such as frozen shrimp export) or service (such as customs clearance) whose

business processes are subject to the business process analysis exercise. (See Box 3B-1 for anexample)

Box 3B-1. Case study – define the project scope

Recognizing the need for a greater efficiency in documentary procedures related to international tradetransactions, Thailand has prioritized the establishment of the Single-Window e-Logistic Platform as thenational flagship project. Progress towards the establishment of the Single-Window e-Logistic Platformwas hindered by several factors. One was the absence of knowledge about the integrative nature of

processes performed by different parties and about information flow throughout the international supplychain.

In response to this shortfall, the Department of Export Promotion (under the Ministry of Commerce)commissioned an in-depth study on the export process with the following objectives:

To drive the formalization of the export process;

To investigate interrelationships among processes, information, and stakeholders, as well asrelated laws and regulations;

To provide a basis for simplification of procedural requirements and harmonization of datarequirements; and

To facilitate automation of international trade transactions, and thus the establishment of theSingle-Window e-Logistic Platform.

As export processes vary by product, it is not possible to carry out the study of the export process for all products at once. The selection of export products for the BPA project is based on the following criteria:

Strategic importance of the product on national economy;

Aggressiveness of competition; and

Degree of willingness of stakeholders to participate in data collection process.

For this particular project, frozen shrimp was selected, based on the above criteria. It is one of thecountry’s strategic export products. The export volume of shrimp has been growing for the past five years.The production of frozen shrimp, in addition, involves the whole chain of production from farmers tomanufacturers, retailers, and suppliers. About 80 percent of raw materials for production are sourcedlocally. Thai producers have been targeted to differentiate their products to deal with direct competitionwith low-cost Chinese and Vietnamese shrimp. Rice and poultry are also considered as among Thailand’sstrategic export products. However, relatively close connection with stakeholders from shrimp exporters,their logistics service providers, and relevant government agencies gave relatively more confidence inachieving the goal of the project.

Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for ITInnovation, Kasetsart University.

To initiate a Business process analysis, it is crucial that the project sponsor clearly specifies: The process or set of procedures that he/she is interested in analysing – e.g. only

customs clearance or payment process; or the entire set export procedures from factoryfloor to the port.

The environment and conditions in which the industry of interest operates and whichshall be included in the BPA; i.e. mode of transport, terms of delivery, terms of payment,and country of destination (given that regulatory requirements vary from one country toanother). An example is provided in Box 3B-2.


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Box 3B-2. Case study – scope of analysis

The Ministry of Commerce, represented by Department of Export Promotion, as a project sponsor,specified that the analysis of the frozen shrimp export process covers all activities in the international tradetransaction, which range from “the establishment of commercial contracts,” through “the arrangement of

inland and cross-border transportation and export formalities to meet regulatory requirements” to “the payment of the purchased cargo.” Due to the fact that mode of transport, terms of delivery, and terms of payment can vary, the project sponsor agreed to the following assumptions made for the study:

Ship: Shrimp exporters choose ocean freight as a mode of transport, as it is one of the cheapestand most convenient ways to ship goods overseas.

CIF (Cost, Insurance, and Freight): Shrimp exporters in most cases arrange and absorb the cost ofshipping their cargo to the port of destination. Minimum insurance coverage is also procuredagainst loss of or damage to the goods during the carriage.

FCL (Full Container Load): For simplicity, the analysis of frozen shrimp export process traces theoperation of a sole exporter. It is also assumed that the whole container is intended for a singleconsignee.

CY (Container Yard) Container Service: For simplicity, it is assumed that “CY/CY” containerservice is used. Under such service, the carrier delivers an empty container to exporter’s premises

for loading and brings the loaded container back to the container yard. At the container yard, thecontainer waits to be loaded onto the vessel. No unpacking or modification is made.

L/C (Letter of Credit): For simplicity, a letter of credit is assumed as method of payment.

Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for ITInnovation, Kasetsart University

Activity 1.2

Project manager/project leader conducts initial desk research on the environment and conditionsin which the business domain of interest operates.

Activity 1.3

Project manager/project leader, based on the outcome of the desk research, identifies core business processes and stakeholders who interact with those business processes.

Box 3B-3. Identifying core business processes

Core business process in the context of this BPA Guide refers to the business process that regularly occursin typical trade transactions. Business processes on the production or manufacturing side are not included.Box 3B-4 provides a sample list of business processes that must be carried out every time when exportingfrozen shrimp to the major export markets for Thai frozen shrimp including the United States, Japan, andthe European Union.

In the business domain of interest under the environment and conditions in which the business domain ofinterest operates, the project manager/project leader often comes across business processes that are notneeded to be carried out in every trade transaction. These business processes are not core business

processes. For example, the acquisition of an export license falls into this category of business processes. Itis one of the first requirements that one needs to fulfill in order to obtain the right to export goods tocountries of trading partners. An export license, whether a general or a product-specific one, usually

permits exporters to export their products multiple times within a pre-specified timeframe. The renewal ofthe export license is required only when the validity period is about to end. The validity period may varyfrom months to years.

Project manager/project leader should view business processes that are not usually carried out in everytrade transaction as either conditions that must exist before carrying out core business processes orexceptions that only apply when certain conditions prevail. Even though they are not core business

processes, it is also important that the project manager/project leader addressed them in the study. Relevantinformation such as time, costs, and how to complete the processes may be provided. However, it isrecommended that the project manager/project leader does not incorporate it into the analysis.


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For example, the project manager/project leader should note in the ‘Process Description’ that in order toexport frozen shrimp from Thailand to the United States, Japan, and European Union, exporters must

possess a general license issued by Department of Foreign Trade and a license for trading fishery andaquaculture products issued by Department of Fisheries. If the export shipment is for the United States andthe European Union, a membership with Thai Frozen Foods Association is also required.

Time Cost (Baht) Valid (Year)

General license 3 Days 150 5

License for trading fishery and aquaculture products 5 Days 200 1

Membership with Thai Frozen Foods Association 2 Months 15,000-30,000 1

Project manager/project leader may provide the information about the time and costs that exporters have tospend to obtain them as well as the validity period. The information regarding such regulatoryrequirements, however, should only be treated as ‘input and criteria to enter/begin the business process.’ Itshould only be addressed in process description, but not incorporated into the use case diagram, the activitydiagram, and the time-procedure chart.

Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for ITInnovation, Kasetsart University`

Activity 1.4

Project manager/project leader documents capture core business processes and stakeholders ofthe business domain of interest using UML Use Case notations (see table 2C-1).

Project manager/project leader uses the following notations:

- to depict core business processes;

- to depict each stakeholder, who is known as Process participant/businessdomain expert; and

- to depict all actual associations between business processes and process participants/business domain experts.

When there are core sub-business processes, project manager/project leader mayorganize core business processes into a process area. Boundaries may beused to group core sub-business processes together.

An example of a UML use case diagram is given in Box 3B-4.

The illustration of high-level business processes and their stakeholders in the use case diagram isrecommended as the first step in identifying business processes that fall under the businessdomain of interest for several reasons:

1. The use case diagram visualizes high-level business processes and their stakeholders in aviewpoint that is simple enough to be easily validated by process participants/businessdomain experts. Having the use case diagram validated by process participants/businessdomain experts helps ensure the modeling of the ‘right’ business processes.

2. The validated use case diagram serves as a frame of reference for project manager/projectleader to plan and manage the complexities of the BPA project.

3.

The validated use case helps process analysts structure their business process modelingand analysis work. Using the validated use case diagram as a frame of reference, scopecreep can be avoided.


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Box 3B-4. Case study – visualize the project scope

This UML use case diagram illustrates core business processes used when exporting frozen shrimp from Thailandto its major export markets including the United States, Japan, and European Union. It provides the frame ofreference for analysing the business processes in detail. The diagram lists all process participants/business domain

experts, business processes, and the relationships among them.

The diagram shows that the scope of analysis will cover all activities in the international trade transaction, whichinclude commercial procedures, transport procedures, regulatory procedures, and financial procedures. The core

business processes are organized according to the UN/CEFACT “Buy-Ship-Pay” model. Given that the movementof cargo has to comply with regulatory requirements, transport procedures and regulatory procedures their mainsub-processes are therefore grouped as “Ship”.

Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for IT Innovation,Kasetsart University

Activity 1.5

Process participants/business domain experts review the use case diagram and provide feedbackas well as suggestions for further improvement.

Activity 1.6

Project manager/project leader determines if the use case diagram accurately visualizes the project scope, based on the feedback from process participants/business domain experts. If it does, project manager/project leader revises and/or refines it according to the feedback from process participants/business domain experts.


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Activity 1.7

Project sponsor approves the final version of use case diagram. The use case diagram acts as a baseline for planning, managing, and carrying out the business analysis study.

The use case diagram may be changed at a later stage if an inaccuracy is found. The revised

diagram should be approved by the project sponsor before adopting it as a frame of reference.

Step 2: Develop a work plan and secure resources

The objective of this step is to develop a detailed work plan that guides and manages theimplementation of the business process analysis. The work plan should be based on the use casediagram developed in Step 1.

Based on the use case diagram, the work breakdown structure can be developed. An output-oriented description of project tasks as summarized in the work breakdown structure then servesas a basis for project time, cost, and effort estimation.


This process requires the participationfrom:

Project manager/project leader

Project Sponsor

Process Analysts

Figure 3B-4 illustrates activities that a project manager/project leader has to carry out in this stepin cooperation with process analysts and under the oversight of the project sponsor. Theseactivities are further explained below.


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Activity 2.1

Project manager/project leader identifies, in sequential order, tasks required to derive each outputof the business process analysis project. They include:

A set of activity diagrams; each explains a core business process as represented by a usecase in the use case diagram;

A set of process descriptions; each provides a textual description of an activity diagram

itself and related information including relevant laws, rules, and regulations, documentaryrequirements, input and criteria to enter/begin the business process, output and criteria toexit the business process, and indicate the average time required to complete them;

An integrated activity diagram; A time-procedure chart; A list of identified bottlenecks; and Recommendations to improve the business process and/or to-be business process models.

To prepare a detailed breakdown of the work and structure of the project, the projectmanager/project leader needs to anticipate all project activities outlined in Step 3 onward. While

Activity 3.1 – 3.4 and Activity 4.1 – 4.12 have to be carried out for all core business processes

represented by use cases in the use case diagram (see Box 3B-5 for an example), the rest –including the development of integrated activity diagram, time-procedure chart, a list ofidentified bottlenecks, and recommendations for future improvement – requires only a one-timeimplementation.


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Box 3B-5. Case study – use cases of core business processes in frozen shrimp export

Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for IT Innovation,Kasetsart University

Activity 2.2

Project manager/project leader estimates the effort (man-hours or man-days)needed to complete each identified task and to prepare all deliverables. There is no standard

benchmark time for each activity required to complete the business process analysis project.

Likewise there is no one-size-fits-all solution to determine the amount of required resources.However, the following tips may be helpful for time and resource estimation:

In conducting business process analysis, great time and effort is spent on collecting andcompiling data into visual diagrams and written descriptions. There is a set of similar

project tasks for elaborating each use case into an activity diagram and process description.The more process participants/business domain experts are involved in a business processor a use case, the more complex and time-consuming the business process analysis will be.

The first session of a face-to-face data-collection interview with each process participant/business domain expert (Activity 4.4) may take one to two hours. Given thatthe business process analysis is an iterative task, the interview with relevant process

participants/business domain experts may be conducted more than once. However, the

project teams should avoid conducting more than three interviews with the same process participants/business domain experts.


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Project Evaluation and Review Technique (PERT) estimate 8 might be used for this purpose (See Box 3B-6).

Box 3B-6. Project Evaluation and Review Technique (PERT) estimate

Project Evaluation and Review Technique (PERT) allows probabilistic treatment of activity duration in theestimation. PERT estimate may be used to compute weighted average for each individual task. A three-

point estimate includes pessimistic, most likely and optimistic. The equation is as follows:

Task Estimate = Optimistic Time + (4 * Most Likely Time) + Pessimistic Time6

The Optimistic Time is the minimum time in which a task can be completed. It is the best-casescenario set under the assumption that everything goes as planned and no internal or externalobstacles will occur.

The Most Likely Time is an estimate of the expected time that is required to complete the task.

The Pessimistic Time is the maximum time of the worst-case scenario in which the task should becompleted.

Activity 2.3

Project manager/project leader develops a project schedule based on the following information: Set of tasks which are identified in a sequential manner Project effort estimates Duration of the project stated in the contractual arrangement made with the project

sponsor.

Activity 2.4

Project manager/project leader assigns process analysts to the project. Once again the number of

process analysts required depends on the project duration. The shorter the project duration is, thelarger the number of process analysts is required. The responsibilities and required skills of

process analysts are listed in Box 3B-7.

Box 3B-7. Responsibilities and required skills of process analysts

Process analysts are responsible for the following:

Studying and analysing the current processes (“as-is" processes);

Creation of the business process model;

Developing recommendations how to improve the current processes; and

Designing the new processes (“to-be” processes) in collaboration with other stakeholders.

Process analysts should be selected based on the following skills.

Technology skills: Although it is not necessary, basic knowledge of UML notations, especially inuse case diagrams and activity diagrams is desirable. Related work experience is complementary.

Business/ organization skills: It is important that the selected process analysts know or have anaccess to the individuals of the business domain subject to the business process analysis study. Itis also very useful if they have knowledge of a particular organization or industry associated withthe targeted business domain.

Interpersonal/ communication skills: The ability of the selected process analysts to effectivelycommunicate and interact with other project members is crucial to project success. They shouldhave the ability to create and sustain reasonably good relationships with project stakeholders andespecially process participants/business domain experts.

Analytical skills: Ability to think analytically. They should be able to capture relevantinformation from verbal expression and written documents. They should be able to summarize theinformation, as well as formulate and document the business processes.

8 Marchewka, J.T. (2006). Information Technology Project Management , 2nd ed. John Wiley & Sons Inc. Hoboken, New Jersey.


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Activity 2.5

Project manager/project leader compiles project time and effort estimates, project schedules, and project staff (process analysts) into the detailed plan for project stakeholders to review.

Activity 2.6

Project stakeholders review the detailed plan and then provide feedback.

Activity 2.7

Project manager/project leader, based on the feedback from process analysts, determines if thedetailed project plan needs further revision. If it does, project manager/project leader revisesand/or refine according to the feedback received.

Activity 2.8

Project sponsor review the detailed plan and then provide feedback.

Activity 2.9

Project manager/project leader, based on the feedback from project sponsor, determines if thedetailed project plan needs further revision. If it does, project manager/project leader revisesand/or refines it according to the feedback received.

Activity 2.10 Project sponsor approves the detailed plan as the baseline for future project execution, monitoringand evaluation.

Phase II: Data collection and process documentation

The knowledge about existing business processes is normally embedded in government or private

sector employees who routinely carry them out. The know-how aspect of those business processes is usually not documented and the lack of process documentation makes it impossibleto analyse and improve existing business processes further. The purpose of Phase II is to makethe knowledge of these business processes readily available through documenting them. Thedocumentation then can serve as a baseline to improve the existing business processes.

Phase II includes two steps:Step 3 - Acquire background informationStep 4 - Conduct interviews and document captured data

Step 3: Acquire background information

It is important that process analysts acquire at the outset as much background information on the business processes under examination as possible, prior to the face-to-face interviews.Background information could be obtained via desk research through information publiclyavailable on the Internet, information portals, and at inquiry points of the agencies or businessesinvolved in the business domain of interest.

The background information provides process analysts with useful leads to the preparation ofinterview questions and makes them better prepared to conduct face-to-face interviews. It alsoallows process analysts to effectively and efficiently capture the information to be collectedduring the face-to-face interviews and put it into a broader context. Stakeholders participating in

this step are shown in Figure 3B-5.


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This step requires the participationfrom:

Process Analysts

Project manager/project leader

Activities associated with gathering the background information are described in Figure 3B-6, and further explained below.


Activity 3.1

For each use case (see Box 3B-5 for example), process analysts conduct desk research, whichinvolves the gathering of the background information, related laws and regulations from publiclyaccessible sources such as websites or inquiry points of relevant governmental agencies and

business.

Activity 3.2

For each use case, process analysts systematically record and organize relevant information into afolder. The folder should contain the following information:

Names of government agencies and businesses responsible for carrying out respectiveactivities in the business processes under examination (e.g. chambers of commerce, incase of issuance of a non-preferential certificate of origin);

Contact names and details of potential interviewees from the identified governmentagencies and businesses, i.e. officer-in-charge at the operational level for each activity;

Sequence of activities in a process;

Forms and documents associated with each activity (e.g., import/ export permits, SPScertificates9, certificates of origin, commercial invoice, customs declaration, etc.).

Activity 3.3

The project manager/project leader reviews the outcome of desk research and provides feedback.

9 Sanitary and Phytosantary certificate


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Activity 3.4

Process analysts, based on the feedback from project manager/project leader, determine whetherthey have sufficient information to proceed to the next step.

Step 4: Conduct interviews and document captured data

The purpose of Step 4 is to conduct the face-to-face interviews with process participants/businessdomain experts. Face-to-face interview is the most commonly used data collection method for the

business process analysis exercise. This process aims to confirm the accuracy of the previouslycollected background information and to gain an in-depth understanding of each use case or core

business process in question. Such comprehensive information is necessary for creating a visualrepresentation and descriptive explanation for each use case.

Once the face-to-face interviews with the relevant business process participants have beenconducted, process analysts consolidate all inputs from interviewees and document them. There

are four main outputs that should be delivered under Step 4:1. A set of activity diagrams2. A set of process descriptions3. An integrated activity diagram4. A time-procedure chart

A description of each of the four outputs including a graphical example is provided in Box 3B-8 below.


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Box 3B-8. Output of Step 4

1.

A set of activity diagrams; each explains each core business process as represented by a use case inthe use case diagram

2. A set of process descriptions; each provides a textual description of an activity diagram itself andrelated information including relevant laws, rules, and regulations, documentary requirements, inputand criteria to enter/begin the business process, output and criteria to exit the business process, andindicate the average time required to complete them


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3. An integrated activity diagram that combines all activity diagrams together

4.

A time-procedure chart which informs the average time required to complete each core business process and the sequential order that core business processes are carried out


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The stakeholders and activities involved in this step are shown in Figures 3B-7 and 3B-8.


This step requires the

participation from: Process analysts

Process participants/business domain experts

Project manager/projectleader

Project sponsor

Activity 4.1

As noted before, potential interviewees are selected based on their involvement in a business process area of interest and the type of information that they can provide. The process analystscontact potential interviewees by phone or email to agree on the date, time and venue of the face-to-face interview. Process participants/business domain experts who are in charge at theoperational level have relatively more potential as they usually deal with respective proceduresand formalities associated with the business process on a daily basis.

To ensure the comprehensiveness and accuracy of the data to be collected, it is ideal that processanalysts interview a diverse range of process participants/business domain experts performingdifferent roles in the business domain of interest. A list of process participants/business domainexperts whom process analysts should interview can be derived from a use case diagram. Box

3B-4, for example suggests that, in the case of Thai shrimp exports, process analysts shouldinterview exporters, exporter’s representatives, authorized private inspectors, customs,department of fisheries, port authority, etc. in order to obtain necessary information for themodeling of business process used when exporting frozen shrimp from Thailand to its majorexport markets.

It is important that process analysts have sound communication skills. Prior to inviting the potential interviewees, process analysts need to introduce themselves in a polite, friendly, and professional manner. Process analysts also need to clearly explain the purpose of the interview,how the interview will contribute to the overall business process analysis exercise, what will bethe results of this exercise, and how these will be used. Doing so allows them to establish a goodrapport with the potential interviewees. Establishing a good rapport not only increases the chanceof having potential interviewees participate effectively in the planned face-to-face interview, butalso helps create a pleasant atmosphere during the interview. Pleasant atmosphere is a vital

precondition for a successful and result-oriented interview session.

Activity 4.2

Process participants/business domain experts decide if they wish to participate.

Activity 4.3 If process participants/business domain experts agree to participate, they inform process analysts

when it is convenient to have a face-to-face interview. If not, process analysts look for other potential interviewees who can substitute for the person who rejected an interview. A potentialsource could be a referral from the initial person to be interviewed.


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Activity 4.4


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In parallel with Activity 4.1, process analysts plan the interview session and prepare a list ofquestions based on the background information acquired earlier. The questions need to be easy tounderstand and structured in a logical sequence to ensure the best possible result. The questionsshould enable process analysts to gain a better understanding of those points they have previouslyfound unclear. Examples of such interview questions, which were generalized from the Frozen

Shrimp Export Process Analysis, are provided in Box 3B-9.

Box 3B-9. Examples of interview questions

(for interviewing exporter/importer and government agency)

Business process analysis:

What are objectives of the business process?

Who is involved in this business process?

What are necessary activities that an exporter/importer has to take in order to acquire a particular document?

Are copies of documents accepted in lieu of original documents?

How does an exporter/importer submit the request for a particular document?

Are there guidelines that provide an exporter/importer with instructions on how to prepare the request for a particular document? If yes, do the guidelines clearly specify what you have to do or what information youhave to provide?

How often are the request for a particular document (e.g. permit, certificate) rejected? Why?

How does an exporter/importer collect the requested document (manually or electronically)?

Is there any fee that an exporter/importer has to pay in order to acquire the document? If so, how much (totalsum including informal payments)?

What are the laws, rules, or regulations associated with these procedural and documentary requirements?

For what purposes are the collected data used?

Which business processes can be carried out in parallel?

Which business process has to be carried out next?

Information flow analysis:

With which other actor in the business do you need to communicate? What kind of data do you exchange?

What kind of information do you send to which actor?

Time analysis:

How much time, including waiting time, on average in hours or days does it take to complete this entire business process from the beginning to the end? What is the maximum and minimum time?

How many actual man-hours does it require to complete this particular activity in this business process?

Cost analysis:

How much on average does it cost to complete this particular activity in this business process or to process a particular document/set of documents?

Suggestions for improvement:

What are the problems/bottlenecks you encounter in terms of procedures and regulations to import orexport?

What are improvements that you would like to see in the near future?

Activity 4.5

Process analysts conduct the face-to-face interviews with the process participants/businessdomain experts. It is recommended that the following issues are taken into account.

Each face-to-face interview session is attended by 1-2 process analysts. Having two process analysts in the session is in fact necessary when the process analysts are relativelynew to the field, or have little experience in conducting business process analysis.

If the interview is tape recorded, it is necessary to obtain permission from the interviewee prior to the interview. But note, tape recorders may deter interviewees from providingcritical information and is therefore not advisable (e.g., business information, informationon informal payments, other sensitive information etc.)


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Although the process analysts conduct the interview session with prepared questionswhich are organized in a logical sequence, the interview is unlikely to be a pure questionand answer session. It is recommended to keep the interview free-flowing andconversational, however within a basic structured framework. The best way is to start withgeneral questions to draw information about a particular business process that is common

to all operational cases. The general questions are then followed by more specific set ofquestions not only to seek clarifications but also to identify discrepancies and conditionswhere such discrepancies occur. Process analysts should adjust their questions accordingto how the interviewee is responding. They may also inject their opinions or ideas tostimulate the interviewee to express and elaborate his/her ideas related to the subjectmatter.

During the face-to-face interviews, the process analysts should also seek interviewees’opinions and observations on any bottlenecks and issues related to the process, documents,laws, rules, and regulations that should be improved, why and how to improve them.

Process analysts should take notes carefully. All points the interviewees make should bewritten down, even though they may sound irrelevant at the moment.

Process analysts should reiterate statements made by the interviewees to confirm theircorrectness and understanding of the obtained information.

Process analysts should always respect the time schedule. A summary of the major pointsshould be made before ending the interview session.

Activity 4.6

Process participants/business domain experts participate in the interview and, if possible, provide process analysts with documents that contain additional information related to the discussion aswell as forms with sample data mentioned during the interview. Sample documents and datarelated to the interview should be taken as the opportunity arises as it is often difficult to obtaindocuments and data afterwards.

Activity 4.7 Process analysts consolidate all the statements made by interviewees into an activity diagram foreach use case immediately upon their return to the office. This work should be completed withinmaximum one working day after the interview. How to draw an activity diagram is demonstratedin Box 3B-10.

In this activity, process analysts may discover common patterns in the activity diagrams. Reusingthese patterns helps avoid repetition of work and save time. For example, the customs declaration

process from the business process analysis of exporting frozen shrimp can be reused in a business process analysis for exporting frozen poultry products.

Activity 4.8

Process participants/business domain experts review the activity diagrams and provide feedback.

Activity 4.9

Process analysts, based on feedback from process participants/business domain experts determineif individual activity diagrams need further revision. If it does, process analysts revise and/orrefine them according to the feedback received.


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Box 3B-10. How to draw an activity diagram

An activity diagram portrays a sequence of activities carried out to achieve a specific goal. It illustrates detailedactivities and flows of information or documents from one responsible party to another in a given sequence. To drawan activity diagram,

Process analysts first prepare swimlanes for parties involved in a business process. Process analysts then list activities involved in the business process in a sequential order and assign a unique

identifier to each of them. Each activity is placed in the swimlane with a label of the party who carries it out.

Process analysts list documents associated with the business process. The documentary objects should be placed in the swimlane of the party either originating or holding them.

Process analysts add decision points represented by a diamond where needed and provide a conditionalstatement for each transition.

Lastly, process analysts create a starting point (initial state), an ending point (final state), and connections forall activities and documents between them.

Table 2C-2 presents the basic elements and notations of an activity diagram that is applied in this business processanalysis study.

The sample activity diagram shown below provides an elaboration of “Have the product sampled and examined” usecase which is part of the BPA of frozen shr

Business Process Analysis Guide to Simplify Trade Procedures

Documents